Question

The cost of off-campus living for U of O students is normally distributed. The Office of the Registrar estimates that on average it costs students $1,200 per month to live off-campus. A student group suspects that the average cost of living is higher than what is listed by the registrars office. They decide to conduct a hypothesis test. The student group randomly surveys 25 students and finds that they pay an average of $1,275 per month with a standard deviation of $300.

What is the P-value of the appropriate hypothesis test?

Answer 1

One-Sample t-test

The sample mean is Xˉ=1275, the sample standard deviation is s=300, and the sample size is n=25. Null and Alternative Hypotheses The following null and alternative hypotheses need to be tested: Ho: μ =1200 Ha: μ >1200 This corresponds to a Right-tailed test, for which a t-test for one mean, with unknown population standard deviation will be used. Test Statistics The t-statistic is computed as follows: The p-value The p-value is the probability of obtaining sample results as extreme or more extreme than the sample results obtained, under the assumption that the null hypothesis is true. In this case, the p-value is